Mohl sees a bull market

AMP chief executive Andrew Mohl said investors in AMP funds had negligible exposure to US sub-prime mortgage securities. Mohl said that at a group level AMP was "short sub-prime".

He said the group had been extremely cautious with its investment recommendations and did not have Westpoint, ACR or any other failed property finance groups on its recommended lists.

Mohl said: "Because of the rigour of our research our customers are not exposed."

"We do see more problems ahead for the hedge funds. And there will be other shocks. Financial institutions that have given underwriting commitments will be stuck with assets they thought they could sell."

But Mohl was positive about the longer term outlook: "We have had a credit bubble where risk was mis-priced. What is occurring now is a significant reaction but it is a correction in what we see as a bull market."